AMR also said it would acquire 260 A320 aircraft from Airbus, with an option to acquire 365 more.

"We'll have the youngest fleet among our U.S. peers within five years as a result of this deal," said AMR president Tom Horton told CNN International.

AMR said it "expects to create [the] youngest, most fuel-efficient fleet among U.S. industry peers in approximately five years."

As part of the deal, America said the manufacturers are providing $13 billion in "committed financing" through lease transactions. The retail value of each plane ranges from $80 million to $85 million, according to American.

At the same time, AMR said it plans to spin off its commuter airline subsidiary, American Eagle, as a separate, independent company. AMR also said it would consider selling American Eagle, but would not provide a timeframe as to when this might happen.

Also, AMR reported a net loss of $286 million for the second quarter, which it blamed partly on a 31% year-over-year increase in fuel costs, resulting in additional expenses of $524 million.

He added that the purchase was inevitable, considering the aging state of AMR's fleet.

"They just can't afford to keep flying with these older planes," he said.

The airline industry, led by AMR, Delta Air Lines (DAL, Fortune 500) and the recently merged United Continental (UAL, Fortune 500), has been reducing capacity and striving toward greater fuel efficiency since fuel prices spiked in 2008.